Partners Group has launched an unlisted private debt global income fund, a sister fund of the firm’s listed version.
The firm already ran a listed Global Income vehicle and the open-ended fund would use the same investment strategy. It would also be able to purchase listed units in this under certain market conditions.
The fund would follow three distinct private debt strategies; First Lien Senior Secured Loans, Second Lien and Subordinated Investments and Special Situations Investments.
The majority of the portfolio would focus on First Lien Senior Secured Loans which historically offered higher recovery rates and lower price volatility than more traditional fixed income investments such as high yield bonds.
The fund aimed to achieve a cash distribution return of the RBA cash rate +4% net of fees with a focus on capital preservation.
Andrew Bellis, partner and head of syndicated loans, said: “We are very excited about the launch of the Partners Group Global (PGG) Income Unlisted Fund as a sister offering to PGG. Due to significant global inflationary pressures and thus expectations for material interest rates increases, the fund should outperform more traditional fixed income due to the floating rate nature of the underlying portfolio”.
